At least that is what this amounts to. I remember Bradford's parents buying his own a similar policy--not OU.
If you aren't going to pay players, how can FSU pay for an insurance policy that gives Winston $10 million if he gets hurt or his draft status falls? You can't buy a recruit a $30 steak dinner, but you can give a player a policy like this? NCAA is ridiculous.
http://www.tomahawknation.com/2014/8...nsurance-draft
"You get no moral credit for forcing other people to do what you think is right."---Penn Jillette
"It's what I do, I drink and I know things."---Tyrion Lannister
I have problems with this. Who gets the premium paid? Who doesn't? How is the star not getting more benefit than the average player? Can Bowling green afford this if they have a star qb?
OUI Refugee! Seeing all the good people beat me here. Formerly OUJARVIS on OUI.
Can't imagine that FSU thought this would fly by without question.
therefore,
Can't imagine that there would not be at least an arguable 'out' for them on this.
but,
Can't imagine what that might be.
"I don't know karate, but I know ka-razor!" - James Brown
Crazy part is the article said A&M already did it.Originally Posted by KantoSooner
OUI Refugee! Seeing all the good people beat me here. Formerly OUJARVIS on OUI.
So, somebody has figgered out what they believe is a legal way to do it...and at least those two compliance departments think it's safe enough to give it a shot.
Either that or the facts of the case(s) aren't being accurately reported.
"I don't know karate, but I know ka-razor!" - James Brown
A&M found the loop hole last year, and did the same thing. Now, FSU has done it, so we'll see how long the loop hole stays open.
I would be very interested to know what kind of premium FSU (and A&M) paid. These are high risk policies, and I'm sure the premiums reflect that, so it would be a sizable amount of money.
Not a lot of athletic departments out there are interested in spending a bunch of money on one player, but if that player is the Heisman winner (and brings in a lot), then I guess they figure it's worth the cost. A&M, on the other hand, paid their's to remain mediocre.
I've seen figures of about $10k for $1M worth of coverage. But that's for low-end coverage that only kicks in upon complete disability. Higher end coverage that includes loss of market value, such as slipping in the draft, can easily be 2-3x that.
I have been involved in writing similar policies, and can't imagine something like this costs less than $50,000 per million unless the coverage is extremely restrictive. Would likely be a Lloyds of London policy written by one of the specialty shops. The disability piece is reasonably easy to underwrite--the loss of market value would be difficult.
"You get no moral credit for forcing other people to do what you think is right."---Penn Jillette
"It's what I do, I drink and I know things."---Tyrion Lannister
Yep, I would guess you're on target. I don't write policies, but deal a lot with Estate planning and insurance, so I figured this would be costly. Just estimating, I figured the premium on a policy like that (assuming it's $8 - $10 million as reported) would be in the neighborhood of about $400K-$500K.
Add Baylor to the list, it appears they are going to "partially fund" policies for 3 of their players. I haven't seen any detail on it, but the ball is definitely rolling.
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